Amazon AMZN continues to dominate the global cloud computing space on the back of an increasing number of availability zones and regions served by Amazon Web Services (AWS).

This is evident from AMZN’s latest launch of an infrastructure region in Switzerland, namely AWS Europe (Zurich).

The new region comprises three availability zones, which will aid AWS in delivering low latency and offering access to its robust cloud services portfolio and technology, including AI, machine learning (ML), data analytics and the Internet of Things to the customers.

The latest move is expected to enable Amazon to gain traction among various local customers, including developers, big companies, start-ups, developers, government organizations and non-profit organizations, with data residency requirements. The underlined region will help them securely run their workloads and store data in data centers in Switzerland.

With the latest move, Amazon expands its presence in the European cloud market.

Amazon.com, Inc. Price and Consensus

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Increasing Regions & Availability Zones

The AWS Europe (Zurich) region is the seventh of its kind in Europe. Now, AMZN operates seven AWS regions and 21 availability zones across Europe in Frankfurt, Ireland, London, Milan, Paris, Stockholm and Zurich.

With the new region, Amazon’s total number of availability zones stands at 90 across 28 geographic regions. Now, AMZN intends to launch 21 more availability zones and seven more AWS regions in Australia, Canada, India, Israel, New Zealand, Spain and Thailand.

Recently, Amazon announced plans to open a region in Bangkok, Thailand, which will comprise three availability zones.

AMZN recently launched a cloud region in the United Arab Emirates (UAE), making it the second Middle East region of AWS.

Further, AMZN’s opening of a region in Indonesia’s Jakarta remains noteworthy.

The second AWS region in India, Hyderabad, which also comprises three availability zones, is set to be operational by this year-end.

Key Prospects, Competitive Scenario

With the increasing number of regions and availability zones across the globe, Amazon remains well-poised to capitalize on the prospects of the global cloud market.

According to a Grand View Research report, the global cloud computing market is assumed to witness a CAGR of 15.7% from 2022 to 2030. This, in turn, is likely to contribute well to AWS’ performance in the days ahead. This is likely to instill investor optimism on the stock in the near term.

AWS sales rose 27% year over year to $20.5 billion, accounting for 16% of the total sales in third-quarter 2022.

Notably, shares of Amazon have lost 48.3% on a year-to-date basis.

This apart, Amazon’s aggressive expansion efforts are expected to continue aiding its competitive prowess against its strong peers, such as Microsoft MSFT and Alphabet’s GOOGL Google, which are also leaving no stone unturned to boost their presence in this promising market.

Microsoft Azure became the key driver for Microsoft. MSFT is currently riding on the robust adoption of Azure’s cloud offerings. Azure's increasing number of availability zones and regions across the globe and its strength in the consumption-based business are likely to continue driving MSFT's cloud momentum in the near term.

Similarly, Google Cloud is contributing substantially to the total revenues of Alphabet. Expanding data centers, availability zones and cloud regions are expected to keep boosting Alphabet's cloud position.

Nevertheless, AWS, with its strengthening global infrastructure, continues to maintain its dominant position in the cloud market.

Per the latest Canalys report, AWS accounted for 32% of the global cloud spending in third-quarter 2022, while Microsoft Azure and Google Cloud accounted for 22% and 9% of the total cloud spending worldwide, respectively.

Zacks Rank & Stock to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold). A better-ranked stock in the broader Zacks Computer & Technology sector is Arista Networks ANET, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks has lost 9.2% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 15.7%.

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